Super resources

Make SG payments

Superannuation Guarantee (SG) payments

Under the SG legislation, you’re responsible for making super contributions for your employees.

Super plays a big role in your employees’ future and you have a legal obligation to make their super contributions at least quarterly.
Who do I need to make SG payments for?

You need to pay super for employees aged 18 and over who:

work full time, part time or on a casual basis, and

earn $450 or more (before tax) in a calendar month.

You also have to pay super for employees under 18 years of age who:

work 30 hours or more in a week, and

earn $450 or more (before tax) in a calendar month.

How much SG do you need to pay?

The SG legislation requires you to provide super contributions for your eligible employees. The amount you must contribute is a percentage of their ‘ordinary-time earnings’. The SG rate is currently 9.5% and will start increasing by 0.5% each year from 2021/22 up to a maximum of 12% in 2025/26.

Year

SG rate %

2018/19

9.5

2019/20

9.5

2020/21

9.5

2021/22

10.0

2022/23

10.5

2023/24

11.0

2024/25

11.5

2025/26

12

What are ordinary-time earnings?

Ordinary-time earnings are the salary or wages paid to employees for their ordinary hours of work. This excludes (among other things) overtime. It includes over-award payments, bonuses, shift allowances, commissions and paid leave.

What’s the maximum contributions base?

For any given quarter, there is a maximum limit on the SG contributions you’re obligated to make for an employee. For the 2018/19 financial year the maximum contribution in any quarter is $5,132.85 – which is 9.5% of the quarterly maximum contribution base of $54,030. For more, contact the Australian Taxation Office (ATO)